Do you think San Bernardino will rebound from bankruptcy as quickly as Orange County did in 1994?
No (92%, 101 Votes)
Yes (8%, 9 Votes)
Total Voters: 110
High foreclosurerates may bankrupt cities, a recent news article reports.
San Bernardino, Stockton and Mammoth Lakes each declared bankruptcy this year. The high foreclosure rates in all but Mammoth Lakes (whose bankruptcy was due to a court judgment) indicates a tangible connection between residential foreclosures and city insolvency.
Foreclosures have further depressed already-low housing prices in these cities, thereby reducing city revenues due to plummeting property taxes.
Between 2006 and 2009, property values in San Bernardino dropped 65.6%. Though prices have increased since 2009, they remain at less than half their bubble value in 2006. Low assessed property values mean low property taxes, causing revenue shortfalls for local governments – something California is especially susceptible to under Proposition 13 (Prop. 13).
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